UPDATE: Ascendiant Capital Initiates Cinemark Holdings at Buy on Expected Outperformance
In a report published Wednesday, Ascendiant Capital analyst Marla Backer initiated coverage on Cinemark Holdings (NYSE: CNK) with a Buy rating and $32.00 price target.
In the report, Ascendiant Capital noted, “Cinemark operates in some of the fastest growing U.S. markets and is also a leading exhibitor in many high growth markets in Latin America. As a result, Cinemark has enjoyed better than industry performance over the past several years, a trend that we expect will continue. Cinemark's worldwide footprint has grown from 3,096 screens at December 2003 to an estimated 5,742 at June 2013, reflecting an ambitious new build strategy and opportunistic acquisitions. We expect further screen expansion to enhance revenue growth. The company opened its first XD screen in 2009. At 1Q13, Cinemark operated 120 XD screens globally and plans another 150-160 by December 2013. Given that these screens outperform standard ones, we anticipate a revenue lift as the XD network expands.”
Cinemark Holdings closed on Tuesday at $28.25.
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